World Conflicts Always Reasons Not to Invest, but Markets Have Been Resilient

The events going on around the world like the Israel/Palestine conflict and the Russian invasion of Ukraine may cause you pause to invest. It is important to know that in my 30+ years in the business, there have always been reasons not to invest. But actual previous history shows staying invested always works long term. Here’s some great insight from our partners at American Funds/Capital Group…..

“In my 25 years in the investment business, I have never known a good time to invest. There are always a dozen good reasons why it makes sense to wait,” said Graham Holloway, the late chairman of American Funds Distributors.

“Today is no exception … interest rates, the president, constant strife in the Middle East, excessive government regulations and a Congress that is more a part of the problem than part of the solution. A cautious person might be tempted not to invest under those circumstances — unless he wanted to take advantage of an opportunity.”

Those words could have been said yesterday, but they were spoken in May 1981, another time of uncertainty in markets. News drives turbulence in the short term, but company fundamentals drive markets in the long term.

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*Sources: MSCI, RIMES. As of December 31, 2023. Data is indexed to 100 on January 1, 1987, based on the MSCI All Country World Index from January 1, 1987, through December 31, 1987, the MSCI World Index with gross returns from January 1, 1988, through December 31, 2000, and the MSCI ACWI with net returns thereafter. Shown on a logarithmic scale. Past results are not predictive of results in future periods.